RFID in the Packaging World

Transcription

1 RFID in the Packaging World Dr Peter Harrop Chairman

2 is an independent strategic analyst on RFID smart labels, printed electronics and smart packaging. Our core services provide: Consultancy Clients include: Shell Oil Hewlett Packard Rexam Whirlpool Europe Guinness UDV Thin Film Electronics PolyTechnos Schiphol Airport Publications/ Research Independent market and technology research reports covering RFID, printed electronics & smart packaging topics Smart Labels Analyst journal, Printed Electronics Review and the world s largest RFID case study knowledgebase Conferences and Exhibitions Global Conferences: USA, Europe and Asia RFID Smart Labels Active RFID Printed Electronics

3 Consumer Packaged Goods $3 trillion yearly $1 trillion may be unnecessary Theft, fraud, damage, loss, error, expiry, overpackaging (slow delivery), ignorance of needs.. RFID can tackle about $400 billion yearly

4 The world s supply chains are out of control CPG shrinkage is $60 billion yearly of $3 trillion turnover. ECR Europe 75% of the cost of a retail product is getting it there. MIT Up to 20% of foods are discarded due to spoilage through the supply chain. Food and Drug Administration We are still searching for foods containing the Sudan B carcinogen three years later

5 RFID can assist with many packaging challenges Stockouts at retailers cost six percent of sales. One third of these are items in the retailer s store. Procter & Gamble Medication non-compliance costs the US alone approximately $100 billion and 125,000 deaths yearly US National Pharmaceutical Council We need packages that record what was taken when,prompt us, display performance. Counterfeits: Perfume 15%; Aircraft and automotive parts 10%; Pharmaceuticals 10% (In third world 30%); Thousands of deaths every year Industry estimates RFID has few problems of obscuration, orientation or reading many at a time

6 RFID System Basics Tag with electronic identification number Reader sends signal and reads response RFID is an enabling technology like the wheel or paper In healthcare it prevents errors and counterfeiting and locates people and assets In retailing/ CPG it reduces costs and increases sales

7 Short Range Passive RFID Examples

8 Example: Gillette razor packs

9 Omron, Avery Dennison etc use gravure to print RFID antennas NOW

10 The Electronic Product Code (EPC) System unique electronic ID for everything RFID Tagged Products, Cases or Pallets EPCglobal: Managed by GS1 Standardisation of EPC tag types and common infrastructure Over 1000 sponsor companies

11 Example: Smart Shelves A smart shelf system for DVDs in a Tesco supermarket in the UK that has increased sales by 4% (10%?) due to reducing stockouts

12 Retail Mandates for pallets and cases Wal-Mart ($200Bn +): RFID enabled 475 stores, 1000 by year end 300 suppliers tagging cases and pallets of top products Currently receive 3 million tagged cases per week (May 06) Massive payback for Wal-Mart: Out of Stocks reduced by up to 48%; stores with RFID 63% more effective at replenishing items Major competitive advantage for retailers Usually no benefit for CPG companies supplying them

13 Retail Mandates pallet and case RFID Procter & Gamble Fusion blades sales increase 19% by timely arrival at shelf Hanna Candle company 90 pallets worth $12.6M went missing but were found Altria Group ($97Bn), owner of Miller, Kraft, Philip Morris Pallet/case tagging is a pain barrier item level tagging is our utopia CONTRAST The US Military shares the benefit with the CPG company Some European retailers seek mutuality of benefit Item level tagging (mainly packages) benefits everyone

14 Passive RFID: Main operating frequencies 125KHz=LF 13.56MHz=HF UHF 2.45GHz Inductive antenna - flooding Electric antenna - beaming Very Popular

15 UHF tags need very different antennas for different applications

16 RFID without a silicon chip printed directly onto packaging Trials of this primitive form of RFID by Mreal Finland, Acreo Sweden and Somark USA Conductive ink stripes lllllllllllllllllllllllllllllllllll

17 Printed Thin Film Transistor Circuits on Plastic Film (and eventually packaging) 60+ companies Philips, Plastic Logic, Epson, Canon, Xerox, IBM, PolyIC, OrganicID, Infineon, 3M

18 Experimental fully printed RFID labels - insulating, semiconducting, conducting and protective patterns Offset litho, flexo, ink jet and gravure being tried bits read only 52 companies working on this

19 High volume item level RFID tagging History will repeat itself - almost RFID VALUE OF LABEL SALES BARCODE 85% of Barcodes printed direct today RFID printed direct Value of printing directly onto packages and products 1990? YEAR 2015? The peak in numbers is later

20 Total Asset Visibility Active RFID in the military Continuous visibility of items while nested inside packaging & conveyances Any Class 1 EPC Tag Active RFID Tag (with Security) (with GPS/Satcom) Active RFID Tag (with Sensors)

21 Global Potential (Billion/Year) Library 0.1 Singapore Museums, art galleries 0.1 Europe Laundry 0.1 Europe Animals 1 Thailand, S America, US, Eur. Tires 1 Europe Tickets 1 Japan, Europe Cards 2 China Military items 2 US Blood 2 Europe/US Test tubes 2 Europe/US Archiving paperwork 2 US Air baggage 2 US, China Air freight 2 US Drugs 30 US Pallets, cases 40 US, Europe Books 50 Japan Postal 650 Europe Retail items 10,000 Europe/Japan/US ITEM LEVEL IN RED RFID Leadership

22 Forecast For RFID 2006 (Range over 0.5cm, digitally-encoded) 2006 $2.71 billion 45% tags (passive and active) 43% passive RFID systems (excluding tags) 12% active RFID systems (excluding tags) Printed transistor circuits making little impact as yet

23 For further information read: RFID Forecasts, Players, Opportunities Active RFID Item Level RFID Real Time Location Systems The RFID Knowledgebase Over 2100 case studies listed and growing every month. Covering more than 2200 companies, 82 countries Learn from the successes and failures of others Tel: + 44 (0)